The Pakistan Automotive Manufacturers Association (PAMA) has asked the government to suspend new rules governing the commercial import of used vehicles, warning that the changes could cause losses of more than Rs. 50 billion to local automakers and their vendor network.
In a letter dated October 6 to the prime minister’s adviser on industries and production, PAMA raised concerns over an Engineering Development Board (EDB) notification issued on September 30, 2026.
The association said the revised rules relaxed safeguards introduced under an earlier notification issued in September 2025.
Under the revised framework, regulation is limited to used vehicles, whereas the previous rules covered both new and used completely built units.
The new notification also removes the minimum capital requirement for importing companies and the requirement for adequate after-sales service, without establishing an effective product recall mechanism.
The notification also transfers pre-shipment and post-shipment inspection responsibilities from the EDB to the Pakistan Standards and Quality Control Authority (PSQCA).
It further facilitates commercial imports under SRO 2443(I)/2025, allowing PSQCA-registered companies to inspect imported used vehicles.
PAMA cited Ministry of Commerce data showing that commercial imports of used vehicles rose from 48 units in May 2026 to 843 in June, 1,938 in July, 1,445 in August and 2,276 in September.
The association warned that the removal of regulatory safeguards could accelerate the increase.
The association said the changes come as the domestic automotive industry faces uncertainty over the forthcoming Auto Policy and National Tariff Policy 2025-30, alongside proposed tariff reductions intended to increase competition and market efficiency.
PAMA also argued that commercially imported used vehicles benefit from depreciation advantages of up to 36 percent, while local manufacturers bear costs related to plant investment, localization, technology, employment, quality systems, taxation and regulatory compliance.
According to PAMA, a return to fiscal year 2025-26 import volumes could result in losses exceeding Rs. 50 billion for the domestic automotive industry and its vendor network.
It warned that continued growth in used vehicle imports could affect investment, localization, employment, government revenue and the wider automotive supply chain.
The association has asked the government to review the September 30 notification and suspend its implementation until meaningful consultations are held with automakers and other stakeholders.
PAMA said the regulatory framework should protect consumer interests and encourage competition without placing domestic manufacturers at a disproportionate disadvantage.
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